After the inspection on saturday was finally completed, i recognized the need to get estimates on a new roof because of granule loss and missing asphault shingles.

There are tax considerations too and you want to make sure that LPs aren't having to recognize gains without a corresponding distribution to cover their tax liability.  

A single member LLC is not even recognized by the IRS.

Wherever one invests they are better off being an expert in that market first and that way they will recognize opportunities.

Also, just is time is not free, you should recognize that money is not free.Based on what I have read, all three of you are on the note and so contribute equally and have the same risk on that component.

By improving performance, you are "forcing" the value of the property to appreciate in value.It often comes into play at purchase time when you recognize you have a property that is not living up to its potential, and you pay less that what you know it will be worth with your improvements.

Given that it is primarily restricted to certain states, do you see it increasing in popularity among states that don't [formally] recognize the structure?

If they get into a scrap and he leaves, or gets put out, you could simply lock up shop and put the burden on her to go to court to force you to recognize her de facto residency, rather than you trying to figure out where he went and whether you can get any money from her. 

I recognize that with only 3 years of experience in real estate investment, there's still so much more to learn about the business.

When I say, 'properly', I mean you can still do a wrap around a conventional mortgage but the Mortgagee will not recognize the transfer of the obligation from Borrower A to Borrower B.